US regulator blocks Philips' deal to sell Lumileds division

THE HAGUE, Netherlands (AP) — Electronics giant Philips says the planned sale of a majority stake in its LED components and automotive lighting division to a consortium led by investment fund GO Scale Capital has been scrapped after the two sides failed to get clearance from U.S. regulators.

Philips announced Friday that the Committee on Foreign Investment in the United States has not approved the deal for an 80.1-percent stake its Lumileds division that was worth up to $2.9 billion.

Philips CEO Frans van Houten says the Amsterdam-based company is disappointed but will now "engage with other parties that have expressed an interest in exploring strategic options for Lumileds to pursue more growth and scale."